Millennial stock ownership rates are low, but they don’t have to be.
According to GenFKD’s Millennial Money Survey, 69 percent of millennials would buy more stocks and bonds if they had more money. And yet, we’ve seen millennials enjoying the trends of dining out, coffee shops and avocado toast.
Many millennials are choosing to spend their money on short-term satisfaction instead of long-term security. However, a majority of millennials want to buy stocks, and breaking into investing has become incredibly easy.
How to overcome being broke
Short-term spending on wants has its perks, but financial stability is necessary for your well-being. Nights out can contribute to your short-term happiness, but when bills start to roll around, these purchases are not going to pay off.
In contrast, stocks and bonds are a classic tool used to invest in financial security. Being smart with your money shouldn’t be such an outlandish concept. Why not spend on something that you can be confident will pay off in the long run?
Where you spend your money is up to you, but just know that it’s now easier than ever for young people to get into investing and appropriately manage their money in the long-term.
Buying Stocks: Easier than ever
Investment portfolios and stock ownership can seem like total abstractions to the average millennial, but getting into investing is actually very simple and convenient. With smartphone apps like Robinhood, you can buy stocks on your smartphone in just a few taps.
Some millennials already have jumped into the investment game. Those who have done so have had the good fortune of enjoying the lucrative opportunities thrown their way.
Some companies fluctuate wildly, to the benefit and detriment of investors. Others have clear records of stable, market-matching activity. There are opportunities abound for potential investors, regardless of their goals on returns.
Securing your future
As student debt, rent prices and overall cost of living increase, financial security can seem like a far-off dream for millennials, but investing in stocks is a great way to breach that gap and to start fighting back.
Many millennials might be wary because they view the stock market as a risky investment. The 2008 recession could serve to associate the stock market with risk. This is unfortunate, as the stock market holds many safe and reliable stocks that consistently match the market.
Managing your finances can seem like a foreign concept in and of itself, but in the real world, financial literacy is a necessity. Investing in stocks and bonds is an important step toward being secure in your future, and nowadays, it’s an easy step to take.
Takeaway
Stocks and bonds have become more accessible than ever before. And yet, millennials’ classic monetary woes have gotten in the way of this newfound convenience. Planning out your finances and cutting back on short-term spending can potentially open the window to the golden opportunities within stocks and bonds.
Hopefully, more millennials will realize the convenience and simplicity of this potential solution to their financial troubles.
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